JSW Energy has reported that its net profit more than doubled in the December quarter to ₹50 crore from ₹18 crore on the back of higher power output and reduced finance cost.
Revenue was up five per cent at ₹1,993 crore (₹1,904 crore). Earnings before interest, tax, depreciation and amortisation were down five per cent at ₹673 crore.
The company’s finance cost was down 19 per cent at ₹341 crore (₹423 crore) as it repaid ₹780 crore during the quarter to reduce the overall net debt to ₹11,896 crore.
In last nine months, the company’s net debt reduced by ₹2,490 crore while the average cost of borrowing was down to 9.04 per cent from 10.17 per cent in March, 2017.
The company generated 4,944 million units (4,644 mu) during the quarter at its four power plants taking the overall plant load factor to 58 per cent (56 per cent). The fuel cost increased 18 per cent to ₹1,171 crore largely on increase in international coal prices.
Prashant Jain, Joint Managing Director, JSW Energy, said the company would continue to deleverage the balance sheet in preparation to tap various opportunities being thrown up in the stressed power sector.
The oversupply situation in the power sector is slowly getting eased out with merchant power price rising to ₹3.15 per unit from 69 paise logged in same quarter last year.
JSW Energy has signed a long term power purchase agreement with Haryana discom for 176 MW hydro power supply at ₹3.57 a unit and is close to signing PPA for 200 MW in Punjab.